Facebook machinery is oiled to generate income but without much power
Maybe some voices are already enacting the arrival of Facebook to your roof. Maybe young people are walking away irretrievably with this social network. But watching the forecasts about Wall Street managing its balance sheet in the last quarter of the year, you’d think despite everything that the dead is very much alive. More than 2,300 million dollars or what is the same thing as more than 30% growth over 2012. It is the consensus of Wall Street analysts. There are even some like Ross Sandler of Deutsche Bank who claim that these 2,300 million will increase by at least 100 million more. It’s argued that for example, the photo application Instagram which acquired 1.100 million, will generate more than 500 in the last quarter.
If in the second quarter, the annual increase was 34% in the volume of revenues and the third quarter rose to 37% improvement, this time the upward trend will slow down. If the forecast of 2,300 million are met it will mean 31%. This is just a teaser as we still have to see how they have behaved with advertising revenues. In the third quarter, they rose by over 60% compared to the previous year, especially on mobile devices. A priori, the $500 million that Deutsche Bank notes via Instagram may be good news for Zuckerberg as he is one of the new products for advertisers.
Regardless of whether Deutsche Bank has really been successful in their forecasts, if Facebook gets overcome by Wall Street, what is clear is that the machine to generate revenue from Zuckerberg is at full capacity but with less chance growing faster every year.